Entrepreneurship and Small Business Management

This document discusses the traits, skills, and aspects of entrepreneurial personality that contribute to the success of entrepreneurs. It also explores how experience and background factors foster entrepreneurship. The importance of passion, determination, discipline, communication skills, creativity, open-mindedness, self-starting, optimism, and risk-taking in entrepreneurship is highlighted.

Entrepreneurship and Small
Business Management

Table of Contents
Entrepreneurship and Small Business Management........................................................................1
INTRODUCTION...........................................................................................................................3
LO3..................................................................................................................................................3
P5 Characteristic Traits and Skills of Successful Entrepreneurs.................................................3
P6 Aspects of Entrepreneurial personality reflect entrepreneurial mindset and motivation.......4
LO4..................................................................................................................................................5
P7 Fostering Entrepreneurship through Experience and Background.........................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Entrepreneurs are those people who create and operate entrepreneurial ventures. There
are various reasons which make them different from other business managers. This report
includes discussion over various traits which are possessed by entrepreneurs and aspects of their
personality which reflect their entrepreneurial mindset and motivation. Lastly this report includes
discussion various experience and background factors which foster entrepreneurship of
entrepreneurs.
LO3
P5 Characteristic Traits and Skills of Successful Entrepreneurs
There are some of the qualities and characteristic traits which make entrepreneurs
successful and different from other managers. These traits and characteristic traits are as follows-
Passion
This is one of the most important characteristic traits which is possessed by entrepreneurs.
Entrepreneurs are passionate about what they do and what they are willing to achieve. This
passion of entrepreneurs is important factor behind their success. They put extra efforts in their
work so that they can ensure they achieve what they are willing to achieve.
Determination
This is another characteristic trait of entrepreneurs that entrepreneurs are determined about what
they are willing to achieve. Determination of entrepreneurs ensures that they do not change their
vision in case of small and temporary failures. Entrepreneurs ensure that they learn from their
failures and try again to achieve their objectives and vision.
Disciplined
This is another important characteristic trait of entrepreneurs, they focus all their energy on their
work and vision and adhere to activities which can help and contribute in achieving their vision.

They ensure not to distract themselves and eliminate obstacles in their goals. Their discipline
help them to achieve and go ahead everyday in their way to their goals and success.
In relation with skills of entrepreneurs some of the skills of Entrepreneurs are-
Communication Skills
Communication is vital part of any business activity and communication skills of entrepreneurs
are very good. They are good at both written and oral communication skills. Through their
communication skill they are able to convince other people to get associated with them.
Communication skill of entrepreneurs is also visible in their pitch for the clients and investors.
Not just client and investors they are also able to motivate their employees to perform their best
and their communication skill plays important role in this.
Creativity
Creativity is significant aspect of success and successful entrepreneurs are creative and they are
able to generate idea and find solution which is not possible to be found by other people. They
are able to find creative solution of their problem and this creativity is also visible in product and
service they provide to their customers. They are creative and along with that they also
appreciate and encourage creativity of their employees.
P6 Aspects of Entrepreneurial personality reflect entrepreneurial mindset and motivation
Earlier discussion included that entrepreneurs are different from managers and this
difference is because of their unique traits and skills. It is not difficult to identify entrepreneurial
motivation and their mindset through the personality aspect of entrepreneurs as they are different
from others. Some of the aspects of entrepreneurial personality which reflect their motivation
and mindset are as follows-
Open Minded
Entrepreneurs don’t stick on they think and feel is right. They listen and consider everyone’s
opinion and thoughts. This open minded aspect of their personality helps them to think in wider
perspective and they are able to look at the problem from various points of views. This also
increases chances of more accurate decision making. This is important when entrepreneurs are

thinking to provide some goods and services through their venture. Open mind allow them to
think in advance whether their customers will like it or not.
Self Starter
Managers and other people need motivation from others and but when it comes to entrepreneurs
they does not require motivation and assistance from anyone they are self starter. They make
plans for themselves what they are willing to do and how they can achieve what they have
envisioned. They set their own standards and parameters and ensure that they are able to work
according to those standards.
Optimism
Optimism is quality to remain positive in any adverse situation and entrepreneurial personality
and this aspect of their personality reflect their motivation and mindset. Entrepreneurs are
optimistic and remain positive in all situations that they are able to look at the positive side of
failures and challenges they encounter in their journey towards success. They consider that
failure is a chance of learning something and challenges are opportunity that they can utilize by
understanding. This also contributes in their motivation.
Risk Taking
This is one of the most important personality aspect of entrepreneurs that they are able to take
risk and they have strength to take risk. Risk taking is one of the key characteristic of
entrepreneurial ventures and this is why people creating and managing those ventures also have
trait and ability to take risk. Risk taken by entrepreneurs is calculative risk and they know impact
of all their actions.
LO4
P7 Fostering Entrepreneurship through Experience and Background
Entrepreneurs have various skills and their personality contains various traits but there
are various other factors which affect entrepreneurship of entrepreneurs. Most important factors
are their background and experience. In relation with Background this can be of two types

educational background and family and personal background. Mark Zuckerberg Co-Founder and
leader of Facebook is one of the most successful entrepreneur world has known. Mark
Zuckerberg founded and before that invented Facebook which is top social networking site. In
relation with fostering his entrepreneurship factors affected are-
Background
Personal background of Mark Zuckerberg is that his parents are psychiatrist and Dentist. This
means that his parents are educated and from very young age Mark was interested in Computer
and software and started using computers and writing software in his middle school. Later one
private tutor was also hired to teach him software development. This details about his
background tells that Mark got his education in subject of interest and later became entrepreneur
with the help of same education and this contributed in fostering his entrepreneurship. Family of
Mark also supported him for all his endeavours and this resulted that Mark became one of the
most successful entrepreneurs in the world. This also link with one of the trait and characteristic
of entrepreneurs that they are intelligent and able to identify what people are going to like.
Experience
Experience works both the sides in fostering entrepreneurship. Positive and successful
experience helps in motivating entrepreneurs to do better and keep doing and as entrepreneurs
are passionate and determined negative experience of entrepreneurs also help them in remain
stick with their vision. One of the best example related to this is Henry Ford, founder of Ford
Motor Company. Henry founded two automobile companies before finally achieved success with
Ford Motor Company. This proves that success of entrepreneurs is affected by their experience
and negative and bad experience of Henry Ford with failure of two automobile company does
not affected his passion but positively contributed in making its more powerful that finally it lead
to success. This experience of entrepreneurs also tests their determination and commitment for
their vision and those who succeed in this are able to reach to their vision.
CONCLUSION
On the basis of above discussion it can be concluded that skills and characteristic traits
not just make entrepreneurs different from others but are also important for them so that they can

achieve their vision and success. This skills and characteristic traits are affected by the
experience and background and even if they are unfavourable successful entrepreneurs are
required that they remain stick with their vision to ensure they can achieve it.

REFERENCES
Books and Journals
Kerr, S.P., Kerr, W.R. and Dalton, M., 2019. Risk attitudes and personality traits of
entrepreneurs and venture team members. Proceedings of the National Academy of
Sciences. 116(36). pp.17712-17716.
Luca, M.R. and Robu, A., 2016. Personality Traits in Entrepreneurs and Self-Employed. Bulletin
of the Transilvania University of Braşov. Series VII: Social Sciences. 9(58). pp.115-138.
Bajwa, S.U., Shahzad, K. and Aslam, H., 2017. Exploring Big Five personality traits and gender
as predictors of entrepreneurs’ cognitive adaptability. Journal of Modelling in Management.
Ikupolati, A.O and et.al., 2017. Entrepreneurs’ managerial skills as determinants for growth of
small and medium enterprises (SMEs) in Nigeria. Journal of Small Business and
Entrepreneurship Development. 5(1). pp.1-6.
Zuckerberg, M., 2016. Mark Zuckerberg. AV2 by Weigl.
Link, S., 2018. The Charismatic Corporation: Finance, Administration, and Shop Floor
Management under Henry Ford. Business History Review. 92(1). pp.85-115.